The AEO is another concept which is developed as a result of Customs Administrations efforts to deal with increasing flow of goods among the countries. Since physical examination of all the goods moving across borders is impeding international trade, the Customs Administrations are selecting the cargo based on their risk management. The idea is to trust the reliable companies and focus on the goods which are considered as more risky.

WCO Framework of Standards (WCO SAFE) defined the AEO as “a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs administration as complying with WCO or equivalent supply chain security standards”.